In order to survive a motion to dismiss the complaint, a plaintiff seeking to pierce the corporate veil must allege facts that, if proved, establish that the party against whom the doctrine is asserted exercised complete domination over the corporation with respect to the transaction at issue, and, through its domination, abused the privilege of doing business in the corporate form to perpetrate a wrong or injustice against the plaintiff. The claim is brought in equity. Factors to be considered in determining whether an individual has abused the privilege of doing business in the corporate or LLC form include the failure to adhere to corporate or LLC formalities, inadequate capitalization, commingling of assets, and the personal use of corporate or LLC funds.
Archival, Inc. v. 177 Realty Corp., NY Slip Op 05386 (2d Dep't October 25, 2023)
